FinTech Global FS Regulatory Round-up - W/e 27 March 2026

ICYMI

• New UK cryptoasset regime: practical actions for firms' forward planning
• Reforming the regulation of payment service providers 
• Transparency obligations for AI‑generated content under the EU AI Act: From principle to practice

Global

FSB: Annual report 2025

The Financial Stability Board (FSB) has published its 2025 annual report. The report summarises key work undertaken in 2025, including ensuring full and consistent implementation of the FSB regulatory framework for cryptoasset activities and global stablecoin arrangements, and improving cross-border payments. [24 Mar 2026] #DigitalAsset #Crypto #Stablecoin #Payments

UK

FCA imposes restrictions on e-wallet payments firm

The FCA has imposed a number of restrictions on an electronic money institution (EMI) that provides e-wallet payment accounts and debit card services to retail and corporate customers. The FCA considers that the firm no longer meets, or is unlikely to continue to meet, the conditions for authorisation under the Electronic Money Regulations 2011 (EMR) due to a number of serious concerns, including in relation to its systems and controls, the fitness and propriety of its sole shareholder, and that it appears to the FCA to be carrying on a cryptoasset business without the required registration. [27 Mar 2026]  #Payments #DigitalAsset #Crypto

FCA: Annual work programme 2026/27

The FCA has published its 2026/27 annual work programme which provides a roadmap of the action the regulator will take over the next 12 months to deliver on its four strategic priorities.

Key initiatives for the year include:

• Integrating AI into regulatory workflows – enabling the detection of harm more effectively and speeding up regulatory decision-making.
• Using generative AI to review documents received from firms – following successful testing, this will be rolled out across authorisations and supervision.
• Using a new sandbox environment to test automated data feeds between the FCA and firms – reducing manual effort and improving the timeliness and reliability of intelligence.
• Investing in smarter case handling – using analytics and digital tools to quickly identify the greatest sources of harm and triage intelligence more efficiently.
• Expanding the Supercharged Sandbox – opening to a new cohort of firms and giving them access to high-quality synthetic data so innovative, AI-driven financial products can be safely tested.

The FCA will also progress several cross-cutting projects including: consolidating the payment systems regulator; anti-money laundering (AML) supervisory reform; and motor finance redress. [26 Mar 2026]  #AI #Payments

FCA: Perimeter report 2026/27

The FCA has published its perimeter report for 2026/27, setting out the most significant issues at the edge of its remit, including where legislative change may be needed to better protect consumers, markets and support sustained economic growth. 

The FCA is seeking Government action on 15 areas where it considers changes to its regulatory perimeter are needed, including changes to modernise the payments regulatory framework so it is agile enough to mitigate new and existing risks (eg financial crime) and support innovation. For open banking, the regulator proposes unlocking the benefits of secure data sharing and driving forward open finance to boost innovation, competition and long-term economic growth.

The report also identifies new consumer risks outside the FCA's perimeter, including the growing use of general-purpose AI for guidance on borrowing, saving and investing. [26 Mar 2026]  #Payments #OpenFinance

FCA: Registration under MLRs ahead of new FSMA regime – crypto firms

The FCA has published information for firms considering applying for registration under the money laundering regulations (MLRs) ahead of the start of the new regime for cryptoasset regulation. The publication includes information on the requirements to be registered under the MLRs as well as on application forms, fees and outcomes.

This information is not relevant to cryptoasset firms that will still need to be registered with the FCA under the MLRs but will not require authorisation under the new Financial Services and Markets Act 2023 (FSMA) regime. For these firms, the MLR gateway will continue to operate as normal. [26 Mar 2026]  #DigitalAsset #Crypto

PSR publishes annual plan and budget 2026/27

The Payment Systems Regulator (PSR) has published its 2026/27 annual plan and budget, which sets out the regulator's key aims, activities and costs for the year. During 2026/27, the PSR will focus on:

• taking action on card fees, including next steps on cross border interchange fees and implementing remedies on domestic scheme and processing fees to address weak competition;
• continuing action to tackle authorised push payment (APP) fraud, including publishing and responding to the independent evaluation of the first year of mandatory reimbursement and monitoring how firms are meeting the standards expected of them;
• overseeing the delivery of critical payments infrastructure, working closely with the BoE, HM Treasury and the FCA through the Payments Vision Delivery Committee;
• supporting the next phases of open banking, including work to establish a long term regulatory framework and future oversight arrangements;
• strengthening supervision and enforcement, aligning approaches with the FCA to support effective oversight; and
• delivering consolidation planning that manages impact and provides clarity and certainty for regulated entities, enabling them to continue operating with confidence.

The PSR's budget for 2026/27 is £26 million, 7% less than 2025/26. [26 Mar 2026]  #Payments #APPFraud #OpenBanking

FCA: Regulatory Priorities – payments

The FCA has published its Regulatory Priorities report for the payments sector. Key priorities for the year include:

• preparing for the future to support effective competition, innovation and growth – the FCA will continue its policy work in areas such as open banking, stablecoins and modernising payments regulation;
• ensuring firms implement the Consumer Duty effectively – firms are expected to assess their products, services and processes against all the relevant rules and guidance, including the Duty, on an ongoing basis;
• protecting financial system integrity – the regulator will continue to focus on fighting financial crime, including fraud and money laundering; and
• keeping customers’ money safe – firms are expected to be ready to comply with the Safeguarding Supplementary Regime which will come into force in May 2026.

An indicative timeline of activities is set out at the end of the report. [25 Mar 2026]  #Payments #Stablecoin #OpenBanking

FCA: Upcoming data sprint – SAMLS

The FCA has announced an upcoming TechSprint that will explore how synthetic data can support the development and testing of innovative anti-money laundering (AML) transaction monitoring solutions. The Synthetic Data AML Solution Sprint (SAMLS) aims to:

• support innovation in AML transaction monitoring using synthetic data;
• improve understanding of how synthetic data can be used to develop, test and validate AML solutions; and
• provide insights for regulators and industry on the opportunities and limitations of synthetic data in financial crime detection.

SAMLS will run from 13 May to 8 July 2026. Further details, including eligibility and timelines, are available in the participation pack. [24 Mar 2026]  #TechSprint

BoE letter: AI in financial services – FPC Q1 2026 meeting

In her letter to the Treasury Select Committee (TSC), Sarah Breeden, Deputy Governor of Financial Stability at the Bank of England (BoE), stated that the Financial Policy Committee (FPC) expects to discuss the potential financial stability risks from AI as part of its upcoming Q1 2026 policy round. The FPC's discussion and judgments are due to be published on 1 April 2026. [24 Mar 2026]  #AI

Europe

OJ: Corrigendum to Regulation on oversight requirements for systemically important payment systems

A corrigendum to Regulation (EU) 2025/1355 on the oversight requirements for systemically important payment systems has been published in the OJ. The corrigendum relates to recital 2 of the Regulation; it corrects a typographical error. [27 Mar 2026] #Payments

EIOPA/EUSPA: Earth Observation and Copernicus applications in insurance

The European Insurance and Occupational Pensions Authority (EIOPA) and the EU Agency for the Space Programme (EUSPA) have published a joint white paper exploring how Earth Observation (EO) data could be harnessed to enhance the supervision of natural catastrophes and assess the impact of extreme weather events on Europe’s insurance sector.

The paper states that financial supervisors can leverage EO technology to:

• rapidly identify affected areas and exposed insurance undertakings;
• estimate overall loss-magnitudes early on by scaling up the micro-level analysis to the sector as a whole; and
• improve benchmarking, model validation and scenario and stress test design by providing objective, data-driven reference points against which model outputs and reported or calculated losses can be compared. [23 Mar 2026] #SpaceTech

Hong Kong

Insurance Authority publishes 12th issue of Conduct in Focus

The Insurance Authority has published the 12th issue of its Conduct in Focus, a periodical newsletter which presents the latest complaint statistics and conduct and compliance themes relevant to insurance intermediaries. The topics covered in this issue include, among others, the use of social media in insurance promotion. In light of the increasing use of social media by insurance practitioners to promote insurance products, the Insurance Authority reiterates the core conduct principles and compliance expectations applicable to digital communications, highlighting the common risk areas and practical considerations to help ensure that the promotional content is clear, fair and not misleading.  [27 Mar 2026]  #SocialMedia

NFRA hosts inaugural Guangdong-Hong Kong-Macao-Shenzhen Joint Financial Regulatory Meeting

The HKMA and the Insurance Authority have announced that the inaugural Guangdong-Hong Kong-Macao-Shenzhen Joint Financial Regulatory Meeting was held in Nansha, Guangzhou on 23 and 24 March 2026.

The meeting was hosted by the National Financial Regulatory Administration (NFRA) Guangdong Office and attended by representatives from the HKMA, the Hong Kong Insurance Authority, the Monetary Authority of Macao, and the NFRA Shenzhen Office.  Officials from relevant departments of the NFRA, Guangdong Province and Guangzhou Municipal Government were also invited to attend.

Participants of the meeting exchanged views on industry developments, supervisory work and market trends, and discussed topics such as banking industry support for the development of the international innovation and technology hub in the Greater Bay Area, and regulatory oversight of artificial intelligence development and application in banking. [25 Mar 2026]  #AI

Singapore

MAS announces successful conclusion of phase two of Project MindForge

The Monetary Authority of Singapore (MAS) has announced the successful conclusion of phase two of Project MindForge, which culminates in the publication of an AI Risk Management Toolkit for the financial services sector. This toolkit, developed collaboratively by a consortium of 24 leading banks, insurance companies, capital market firms, and other industry partners, provides financial institutions with resources for managing AI-related risks across traditional AI, generative AI, and emerging agentic AI technologies.

The MindForge AI Risk Management Toolkit features an ‘AI Risk Management Operationalisation Handbook’ that provides detailed, practical guidance on implementing AI risk management frameworks. This handbook is accompanied by a supplement that features a compilation of AI case studies that document the experiences and lessons learned from financial institutions.

The Operationalisation Handbook is organised into four sections, which are aligned with MAS’ proposed Guidelines:

• Scope and oversight – Establishment of AI governance framework, and clarity of roles and responsibility for AI oversight;
• AI risk management – Identification of AI usage, risk materiality assessment, and AI inventorisation through organisational systems, policies and procedures;
• AI lifecycle management – Implementation of controls covering the entire lifecycle of AI use; and
• Enablers – Development of organisational capabilities, infrastructure, and resources to enable ongoing responsible AI use and risk management.

To facilitate broader industry adoption of AI risk management practices and solutions, MAS will establish an AI risk management workgroup comprising MindForge consortium members and other industry practitioners under the BuildFin.ai initiative to develop implementation resources, facilitate knowledge sharing, and build capabilities and frameworks for managing risks from newer AI technologies such as agentic AI. [20 Mar 2026] #AI

Malaysia

SCM establishes innovation lab to develop new ICM products and instruments

The Securities Commission Malaysia (SCM) has announced the establishment of the Islamic capital market (ICM) Innovation Lab (FIKRALab), a structured co-creation and applied research and development platform to develop new ICM products and instruments.

The FIKRALab, an initiative under the Capital Market Masterplan 2026–2030, aims at advancing Malaysia’s ICM, anchored on Maqasid al-Shariah and guided by Halal-Toyyib. Through the FIKRALab, the SCM seeks to catalyse the development of Maqasid al-Shariah-driven ICM products and services that deliver ethical objectives, real economic value and broader social impact. [26 Mar 2026] #InnovationLab

India

SEBI consults on Framework of IT Resilience Index for MIIs

SEBI has published a consultation paper (CP) – Framework of IT Resilience Index for Market Infrastructure Institutions (MIIs). SEBI is seeking views on creation of IT Resilience Index (ITRI) for MIIs that would be computed periodically on a pre-decided set of parameters and which would provide insights to the MII on health of its IT systems across various dimensions.

Responses are requested by 15 April 2026. [25 Mar 2026] #Cyber

US

SEC Chair addresses the Digital Asset Summit 2026

The Securities and Exchange Commission (SEC) has published the opening remarks delivered by its Chair, Paul S. Atkins, at the Digital Asset Summit 2026. Chair Atkins particularly highlighted the SEC's recent publication of a token taxonomy and an interpretation of the Howey test which "draws clear lines in the sand and definitively states our view about the outer bounds of the agency’s jurisdiction."  [Mar 24, 2026]  #DigitalAsset

CFTC Chair launches Innovation Task Force

Commodity Futures Trading Commission (CFTC) Chair Michael S. Selig has announced the launch of the Innovation Task Force. The Task Force will work in partnership with the Innovation Advisory Committee. With the CFTC, it will engage on the development of a clear regulatory framework for innovators focused on: crypto and blockchain technologies; AI and autonomous systems; and prediction markets and event contracts.

Michael J. Passalacqua, senior advisor to the Chair, will lead the Innovation Task Force.  [Mar 24, 2026]  #DigitalAsset #Crypto #AI

FSOC and AITO launch AI Innovation Series

FSOC and the Treasury Department’s AI Transformation Office (AITO) have announced the launch of the AI Innovation Series. The series is a public-private initiative to support the continued strength and resilience of the U.S. financial system in an era of accelerating technological change.

The announcement states that, "Over four roundtables, the AI Innovation Series will convene financial institutions, technology firms, regulators, and specialized experts to explore the highest-value AI use cases and identify practical approaches to scaling innovation while preserving safety and soundness."  [Mar 23, 2026]  #AI

CFTC: FAQs on registrant and registered entity activities relating to crypto and blockchain

The CFTC's Market Participants Division and Division of Clearing and Risk have published frequently asked questions (FAQs) concerning registrant and registered entity activities relating to crypto and blockchain technologies with responses.  [Mar 20, 2026]  #DigitalAsset #Crypto

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